Abu Dhabi index a tad lower as FAB loses ground

Dubai: The Abu Dhabi Securities Exchange (ADX) general index ended a tad lower, dragged down by a decline in the shares of index heavyweight First Abu Dhabi Bank (FAB).

Gains by Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB), driven by traders seeking to buy at key support levels, added to the downward momentum as the index closed 0.53 per cent lower at 4,871.58.

FAB eased 1.41 per cent lower to end at Dh13.98 while ADCB was up 1.19 per cent at Dh1.70 and Union National Bank rose 0.67 per cent to Dh4.52.

Meanwhile, the Dubai Financial Market (DFM) general index shed 0.37 per cent to end at 2,714.83 as weakness in Emaar Properties weighed on sentiment.

Emaar Properties closed 2.46 per cent lower at Dh4.76. However, Dubai Islamic Bank (DIB) and Tabreed shares ended the day higher, with the former up 0.78 per cent to Dh5.20 while the latter climbed 3.68 per cent to Dh1.69. Union Properties closed 2.42 per cent higher at Dh0.635.

Traded value, however, continued to remain at depressed, averaging Dh160 million in Monday’s trade.

Saudi Arabia’s Tadawul index was up 0.57 per cent to close at 7,847.51 on Monday. Alinma Bank advanced 1.48 per cent to end at 21.90 riyals while Saudi Basic Industries closed flat at 127.20 Saudi riyals (Dh124.38).

DFM underperforming

The Dubai index has shed nearly a fifth of its value so far this year, making it the weakest performer in the region.

Traders are expected to keep an eye out for third-quarter earnings for the period ending September.

In other markets, Saudi Arabia’s Tadawul index has gained more than 8 per cent since January 1.

“Looking forward, we continue to find most of these large-caps too richly valued while most of the fundamental opportunities can be found in the lower market cap size. We do believe that the negative ‘size effect’ will soon revert, which should help us to resume our outperforming trend,” Al Mal Capital said in a recent note.

Elsewhere in the region, the Muscat MSM 30 index closed 0.57 per cent lower at 4,428.80 while the Qatar exchange index rose 0.47 per cent to close at 10,191.68.

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